The thought of losing the family home can be a constant source of stress and fear for any family. As the recession hit Florida, many families unexpectedly found themselves in a position where they had to explore options to save their homes from foreclosure. While struggling to regain financial footing, it may be worth exploring whether filing for bankruptcy is the best way to keep your house.
First of all, the fate of a house under a bankruptcy filing will depend on the type of bankruptcy filed. Both Chapter 7 and Chapter 13 bankruptcy will halt the home foreclosure process. This stay of the home foreclosure process can give you needed time to decide the best course of action and if keeping the home is really the best decision. If you decide that keeping the home is the best choice, Chapter 13 bankruptcy may be the best bet.
Chapter 13 bankruptcy, in general, is best described as a repayment plan. The plan, once approved by the court, is typically a plan to pay back debt over three to five years. This can give you the time needed to catch up on past due mortgage payments and keep the house in the process.
Bankruptcy can be complicated and even shrouded in myth for some. When it comes to ways to keep your house, bankruptcy protection may be the best option for some but not for others. The exact financial circumstances that may have led to the financial distress and the outlook for financial independence in the future will play a significant role in which type is best and which type may benefit you as you try to keep your house in Florida. Moreover, there are bankruptcy exemptions in Florida that may be applicable to one’s principal residence. Our website has more information about home foreclosure and how bankruptcy can help.